Trade Plan for Monday

Posted on August 22, 2010 by trader21 in *TODAY'S STOCK SETUPS, GLOBAL CHART ANALYSIS

The major indices closed the day lower on Friday but did bounce to close off the lows of the day. The bounce wasn’t enough to push most of the indices above the Thursday lows. This was the obvious place for resistance and turned into exactly that. The NASDAQ was however able to pierce this ceiling and spent the last hour trading just above the flat line going sideways. Overall not a very eventful day but we were able to get some nice movement in AKAM. AKAM popped 6.33% to close at 3 year highs.

We have 2 open AKAM positions with the first one up 150% and the second one up 97%. Glad we were able to have such a nice profit cushion to ride out the recent earnings selloff. This profit cushion was enough to allow us to let the earnings announcement be digested, bottom out and then find its footing. This patience definitely paid off.

We are trading at the low end of the recent trading range in the market and are due for a bounce into resistance levels. If we do continue to slide lower then things could get ugly but we don’t expect that to happen just yet.
NEW SETUPS
No new setups for MONDAY
OPEN POSITIONS

Thanks,

Global Chart Analysis

BUY RULES

*We look to buy our setups when they break at least 10 cents above the prior days high.  This gives us confirmation that the setup should continue higher and increases the odds of an explosive move.  Depending on market conditions we will look to start taking profits on ½ position when we get a move of 3%-5%.  We then move our stop to breakeven for the remaining position and let it run in hopes of massive gains. 

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